SECRETARY DONOVAN ANNOUNCES MORE THAN $175 MILLION IN RECOVERY ACT GRANTS IN OHIO TO STABILIZE NEIGHBORHOODS, REBUILD ECONOMIES
Stabilization grants to help neighborhoods recover from the housing crisis

COLUMBUS, OH - U.S. Housing and Urban Development Secretary Shaun Donovan and Senator Sherrod Brown today announced that HUD is awarding over $175 million in Recovery Act funding to communities throughout Ohio under HUD's Neighborhood Stabilization Program. The NSP grants announced today are part of $2 billion awarded nationwide to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes while creating jobs.

During a press conference at the Dodge Recreation Center in the East Franklinton neighborhood in Columbus with Senator Brown, Donovan announced 8 grants totaling $175 million to the State of Ohio and communities throughout the state including: the City of Columbus, the City of Dayton, the City of Springfield, the City of Toledo, Cuyahoga County Land Revitalization Corp., Hamilton County, and The Community Builders Inc.

"Vacant homes have a debilitating effect on neighborhoods and often lead to reduced property values, blight, and neighborhood decay," said Donovan. "This Recovery Act funding will help stabilize hard-hit communities in Ohio by turning vacant homes from eyesores into community assets. The Neighborhood Stabilization program is a key part of the Obama Administration's comprehensive approach to address the national housing and economic crisis."

"These funds are about helping Main Street recover from the economic crisis," Brown said. "By rebuilding neighborhoods devastated by the economic crisis, we will improve surrounding property values, create new jobs, and foster long-term economic growth. By putting vacant properties and lots to good use and targeting funds to the hardest-hit communities, we can rebuild our downtowns and strengthen our communities."

Funded through the American Recovery and Reinvestment Act of 2009, this round of NSP grants is being awarded competitively to applicants who developed the most innovative ideas to address the impact the foreclosure crisis has had on local communities, while demonstrating that they have the capacity to be responsible stewards of taxpayer dollars.

The Neighborhood Stabilization Program was created to address the foreclosure crisis, create jobs,

and grow local economies by providing communities with the resources to purchase and rehabilitate foreclosed homes and convert them to affordable housing. Last year, HUD awarded nearly $4 billion in NSP formula funds to over 300 grantees nationwide to help state and local governments respond to rising foreclosures and falling home values.

In addition, on August 26, 2009, HUD awarded $50 million in technical assistance grants to help grantees more effectively manage the inventory of foreclosed homes they purchase under the Neighborhood Stabilization Program. HUD's NSP technical assistance grants are helping NSP recipients to implement sound underwriting, management, and fiscal controls; measure outcomes created by public funds; build the capacity of public-private partnerships; develop strategies to serve low-income households; incorporate energy efficiency into NSP programs; provide support, and training on the operation of ‘land banks'; and train NSP recipients on HUD program rules and financial management requirements.

The additional $2 billion in NSP grants being awarded today will build on the work being done now to help state and local governments and non-profit developers collaborate to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to middle-income homebuyers. Grantees can also create "land banks" to assemble, temporarily manage, and dispose of foreclosed homes.

The Neighborhood Stabilization Program will also help to prevent future foreclosures by requiring housing counseling
for families receiving homebuyer assistance funds through NSP. In addition, it will protect homebuyers by requiring grantees to ensure that new homebuyers under this program obtain a mortgage from a lender who agrees to comply with sound lending practices.

Secretary Donovan and HUD are committed to providing the highest level of transparency possible as Recovery Act funds are spent quickly and efficiently. It is crucial that the American people are fully aware of how their tax dollars are being spent and can hold their federal leaders accountable. Every dollar of Recovery Act funds HUD spends can
be reviewed and tracked at HUD's Recovery Act website. The full text of HUD's funding notices and tracking future performance of these grants is also available at HUD's Recovery Act website.

HUD is the nation's housing agency committed to increasing minority homeownership, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's
fair housing laws. More information about HUD and its programs is available on the Internet.

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State of Ohio -
The Ohio Department of Development in a consortium agreement with WSOS Community Action Commission, Neighborhood Development Services, Ohio Regional Development Corporation, Mid-Ohio Regional Planning
Commissions, Community Action Partnerships of the Greater Dayton Area, Community Action Commission of Fayette County, and Gallia-Meigs Community Action Agency has been awarded $25,422,148 in NSP2 funds. These funds will
be used in targeted areas across 176 census tracts in seven regions of the state where a specific consortium
member is supporting the implementation of other community development activities. In addition to housing need caused by high foreclosure and abandonment, high cost mortgages and predatory lending, and aging and obsolete housing stock, the targeted areas are characterized by high unemployment, loss of population, and low education attainment levels. The consortium proposed to use funds to provide financing mechanisms in the form of second
loans, with flexible repayment requirements, loan loss reserves, and share equity loans for the purchase and redevelopment of 100 foreclosed or abandoned homes, purchase and rehabilitation of 210 foreclosed or vacant units, demolition of 360 blighted structures, and redevelopment of 190 demolished or vacant properties. These activities
will benefit households earning at or below 120percent of area median income, with 25percent of the funds going to those earning less than 50percent area median income. A market analysis of each area will allow the Consortium to regulate activities in each region based on the market type, availability of appropriate sites, availability of other funding, and opportunities to coordinate NSP2 activities with other efforts, thereby creating stabilization across all seven targeted regions. The Consortium members have also worked to identify local economic development activities and assets in or nearby the targeted areas that may help to create jobs and boost housing markets through local economic development coalitions, land assembly for development, quality industrial parks, intermodal rail and highway access and diversifying economies such as green jobs.

City of Columbus -
The City of Columbus in a consortium agreement with Franklin County, Affordable Housing Trust of Columbus and Franklin County, Campus Partners, Columbus Housing Partnership, Community Development Collaborative of Greater Columbus, and Habitat for Humanity of Greater Columbus has been awarded $23,200,733 in NSP2 funds. These funds will be used in targeted areas across 55 census tracts with high residential foreclosures and vacancies. The Consortium proposed to acquire and rehabilitate 396 foreclosed or abandoned properties, demolish 100 properties,
land bank 50 properties, and redevelop 275 vacant or foreclosed properties. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. These funds, and the leveraging of $11,161,000 in other funds, will stabilize the targeted neighborhoods and create long term affordability in the housing market. The Consortium will also emphasize job creation, business development, and green-building trainings in the targeted communities.

Cuyahoga County Land Reutilization Corporation -
The Cuyahoga County Land Reutilization Corporation in a consortium agreement with The City of Cleveland, Cuyahoga County, and the Cuyahoga Metropolitan Housing Authority has been awarded $40,841,390 in NSP2 funds. The funds will be used in targeted areas across 47 census tracts with high foreclosure and risk scores and also a foreseen opportunity for market restoration. The Target areas are classified based on three types of intervention strategies: re-establishing markets in stable areas that require little demolition, re-branding markets where elimination of blight and vacant properties are needed, and developing affordable housing in distressed markets to develop long term
mixed income housing. The consortium has proposed using funds to acquire, rehabilitate, and resell 216 units of foreclosed or abandoned properties and to provide homebuyer loans (such as a soft second mortgage) for these homes and 150 additional homes, demolish 900 units, deconstruct 95 units so that their components can be reused, and acquire 150 units to be secured and maintained for future purposes. Additionally, 134 rental units will receive developmental assistance specifically for households of 50percent or less of area median income. All activities will benefit households whose income is at or below 120percent of area median income. The Consortium will use these funds and activities to builds from programs that are already being implemented in the City, thereby creating the highest likelihood of neighborhood stabilization and market revitalization in the targeted areas.

City of Springfield -
The City of Springfield, Ohio has been awarded $6,101,315 in NSP2 funds. These funds will be used in targeted areas across six census tracts where loss of employment and population have been key factors causing foreclosure and abandonment. Even thought the City has high foreclosure and vacancy risk scores in every census tract, the City chose to concentrate their efforts in areas where the funds can compliment work that is already in place to further promote economic development and urban center revitalization. The City proposed to demolish 150 blighted
properties resulting primarily from vacancy caused be population loss, redevelop 35 demolished or vacant properties with new construction, acquire and rehabilitate 33 foreclosed or abandoned units for homeownership and rental, and provide housing counseling and education to ensure occupancy by qualified households. These activities will provide affordable housing to households earning at or below 120percent of area median income, with 25percent of the funds going to those earning less than 50percent area median income. The Consortium will also leverage $337,869,700 in other funds to help ensure neighborhood stabilization.

City of Dayton -
The City of Dayton, Ohio in a consortium agreement with the City of Kettering, the City of Fairborn, the County of Montgomery, and Dayton Metropolitan Housing Authority has been awarded $29,363,660 in NSP2 funds. The funds
will be used in targeted areas across 32 census tracts and will expand on and enhance current efforts. The targeted areas are marked by nearly a decade of economic decline, fleeing population, waves of unemployment, and diminished services to residents resulting from a decline in collectable income taxes. The housing market has high vacancy rates and low absorption rates, creating an excess supply in houses, many of which are vacant, abandoned, or blighted. The Consortium requested a waiver to use 20percent of funds for the proposed demolition of 1,621 blighted
structures to reduce the excess supply and remove negative effects of these structures. The Consortium also proposed to redevelop 4 vacant or demolished properties, purchase and rehabilitate 402 foreclosed and abandoned homes, and provide financing incentives for the purchase and redevelopment of 419 foreclosed homes. These activities will benefit households earning at or below 120percent of area median income, with 25percent of the funds going to those earning less than 50percent area median income. With the elimination of blighting influences and the creation of affordable housing for low and median income residents, theses activities will lead to comprehensive neighborhood revitalization.

Hamilton County -
Hamilton County Community Development in a consortium agreement with the City of Cincinnati Department of Community Development, Cincinnati Metropolitan Housing Authority, and Local Initiatives Support Corporation has been awarded $24,068,968 in NSP2 funds. These funds will be used in targeted areas across 21 census tracts in the City of Cincinnati and Hamilton County where stagnant population growth, high unemployment, and a weak housing market have lead to high foreclosure and vacancy risk scores. The Consortium proposed to acquire and rehabilitate
36 rental units, provide funds for the acquisition, demolition, redevelopment, or financing of 241 rental units and 73 homeownership units, and demolish 874 blighted structures. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. The use of these funds, and the leveraging of $737,000 in additional funds, will lead to the stabilization of the targeted areas.

City of Toledo, Ohio -
The City of Toledo in a consortium agreement with Friendship New Vision, Inc., Home Builders Association of Greater Toledo, Maumee Valley Habitat for Humanity, Neighborhood Housing Services of Toledo, Northwest Ohio Development Agency, Professional Remodelers Organization, Toledo Local Initiative Support Corporation, and United North Corporation has been awarded $10,150,840 in NSP2 funds. These funds will be used in targeted areas across 64 census tracts to stabilize neighborhoods affected by abandoned or foreclosed properties and to build on NSP1 activities. The consortium proposed to provide financing mechanisms, in the form of down-payment assistance, home buyer financing, and take-out financing, for the purchase and redevelopment of 125 foreclosed properties, purchase and rehabilitate 309 foreclosed or abandoned properties, and demolish 272 blighted structures. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. These funds, and the leveraging of $3,228,500 in other funds, will help stabilize the targeted areas and ensure the success of programs already underway.

Community Builders, Inc. -
Community Builders, Inc. has been awarded $78,617,631 in NSP2 funds. These funds will be used in targeted areas across 15 states, including Ohio, and 9 census tracts to address a crisis in multifamily housing where the location
and proportion of rental housing relative to the single-family inventory is critical to the viability of the real estate market. Community Builders proposed to acquire and rehabilitate or redevelop multifamily properties that are foreclosed, blighted, or vacant. Their strategy will build on existing stabilization efforts and continue after the NSP2 program. Within an allotted 3 year time frame, Community Builders proposed the creation of a minimum of 1,300 units of affordable housing, with at least 50 percent for households whose income is at or below 50percent of area median income and the remain for households at or below 120percent of area median income.

Community Builders is taking a unique approach by using their NSP2 funds for the development of affordable multifamily housing to rent as apartments, townhomes, and residential complexes with families of mixed incomes. For instance in East Chicago, IN, Community Builder's will work with the local housing authority and a non-profit, Hispanic Housing Development Corporation, to develop 75 rental townhouses for families under 60percent of area median income , with half targeted to family's under 50percent area median income and around 15percent for public housing families.